Which of the following statements are TRUE regarding mutual funds and variable annuities that are in the accumulation phase?

Which of the following statements are TRUE regarding mutual funds and variable annuities that are in the accumulation phase?


I Distributions to mutual fund shareholders are taxable to the holder in the year the distribution is made

II Distributions to mutual fund shareholders are tax deferred

III Distributions to variable annuity holders are taxable to the holder in the year the distribution is made

IV Distributions to variable annuity holders are tax deferred



A. I and III

B. I and IV

C. II and III

D. II and IV


Answer: B.

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